41. Section 164 of the Contract Act provides that "An agent is bound to conduct the business of his principal according to the directions given by the principal or, in the absence of any such directions,:-

a. according to the custom which prevails in doing business of the same kind at the place where the agent conducts the business".

b. according to the instructions which prevails in doing business of the same kind at the place where theagent conducts the business".

c. according to the instructions which prevails in doing business of the same kind in Malaysia".

d. according to the custom which prevails in doing business of the same kind in Malaysia".

42. Section 164 provides that "An agent is bound to conduct the business of his principal according to the directions given by the principal,......". Therefore, failure of an agent to obey the principal instruction will result in:

a. breach of contract and the agent will be liable for any loss suffered by the principal.

b. breach of contract and the agent will not be liable for any loss suffered by the principal.

c. no breach of contract and the agent will be liable for any loss suffered by the principal.

d. breach of contract and the agent will be liable for any loss suffered by the third party.

43. "A, an agent for the sale of goods, having authority to sell on credit, sells to B on credit, without making the proper and usual enquiries as to the solvency of B. B, at the time of the sale, is insolvent, A must make compensation to his principal in respect of any loss thereby sustained".

This illustration represent the principle of law that:

a.To exercise care and diligence in carrying out his work and to use such skill as he possess.

b.Not to make any secret profit out of the performance of his duty

c.To communicate with the principal.

d.Not to make any secret profit out of the performance of his duty.

44."A directs B to sell A's estate.B, on looking over the estate before selling it, finds a mine on the estate which is unknown to A.B informs A that he wishes to buy the estate for himself, but conceals the discovery of the mine.A allows B to buy, in ignorance of the existence of the mine A, on discovering that B knew of the mine at the time he bought the estate, may either repudiate or adopt the sale at his option".

This illustration represent the principle of law that:

a.To exercise care and diligence in carrying out his work and to use such skill as he possess.

b.Not to let his interest conflict with his duty

c.To communicate with the principal.

d.Not to make any secret profit out of the performance of his duty.

45."AdirectsB, his agent, to buy a certain house for him.BtellsAit cannot be bought, and buys the house for himself.Amay, on discovering thatBhas bought the house, compel him to sell it toAat the price he gave for it".

This illustration represent the principle of law that:

a.To exercise care and diligence in carrying out his work and to use such skill as he possess.

b.To communicate with the principal.

c.Not to make any secret profit out of the performance of his duty.

d.Not to let his interest conflict with his duty

46. "An agent may retain, out of any sums received on account of the principal in the business of the agency, all moneys due to himself in respect of advances made or expenses properly incurred by him in conducting such business, and also such remuneration as may be payable to him for acting as agent."

This is the provision of Section:

a.Section 168 of the Contract Act 1950

b.Section 169 of the Contract Act 1950

c.Section 170 of the Contract Act 1950

d.Section 171 of the Contract Act 1950

47. Beside the statutory duties of an gent towards the principal as provided for under the Contract Act 1950 (Section 164 to Section 171), there are also duties provided under the common law, they are:-

i. Duty not to disclose confidential information or documents entrusted to him by his principal.

ii. Duty not to delegate his authority.

iii.Duty to exercise care and diligence in carrying out his work and to use such skill as he possess.

iv. Duty not to let his interest conflict with his duty.

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii and iv

d.i and ii

48. The followings are the method of terminating the contract of agency as provided for by Section 154 of the Contract Act 1950:-

i.by the principal revoking the agent's authority

ii. by the agent renouncing the business of agency

iii. by the business of agency being completed

iv. by the principal or agent dying or becoming of unsound mind

v.by the principal being adjudicated or declared a bankrupt or an insolvent

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii, iv and v

d.iii and iv

49."A directs B to sell goods for him, and agrees to give B 5 per cent commission on the price fetched by the goods.A afterwards, by letter, revokes B's authority. B, after the letter is sent, but before he receives it, sells the goods for RM100.The sale is binding on A, and B is entitled to RM5 as his commission".

This illustration represent the principle of law that:

a.The termination of the authority of an agent does not, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.

b.The termination of the authority of an agent does, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.

c.The termination of the authority of a principal does not, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.

d.The termination of the authority of a principal agent does, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.

50. The termination of the authority of an agent causes the termination (subject to the rules herein contained regarding the termination of an agent's authority) of the authority of all

a. sub-agent's appointed by him.

b. principal appointed by him.

c. sub-principal appointed by him.

d. principal employees appointed by him.